CAH v PMK & Anor

The case of *CAH v PMK & Anor* concerned an appeal to the High Court of Australia. The dispute involved a claim for damages for personal injuries sustained by the appellant, CAH, in a motor vehicle accident. The respondents were the driver of the other vehicle involved in the accident and their insurer. The core of the dispute revolved around the assessment of damages, specifically the appellant's entitlement to compensation for economic loss.

The High Court was required to determine whether the trial judge had erred in their assessment of the appellant's future economic loss. This involved considering the appellant's earning capacity, the impact of their injuries on that capacity, and the appropriate discount rate to be applied to future losses. A key legal issue was the proper application of the principles governing the assessment of damages for loss of earning capacity, particularly in circumstances where the appellant's pre-accident employment was irregular.

In their reasoning, Hayne and Heydon JJ emphasised the importance of assessing future economic loss based on the evidence presented regarding the appellant's actual or likely future earning capacity. They reiterated that damages for loss of earning capacity are not awarded for the loss of a job, but for the loss of the ability to earn income. The Court considered the appellant's work history and the likelihood of future employment, noting that speculative claims for future economic loss should not be awarded. The principles applied underscored the need for a realistic and evidence-based approach to the quantification of such damages, taking into account all relevant factors, including the vicissitudes of life.

The High Court allowed the appeal in part, finding that the trial judge had made an error in the assessment of future economic loss. The Court varied the damages awarded to the appellant to reflect a more appropriate calculation of their loss of earning capacity.